Financial Performance - The group recorded unaudited revenue of approximately HKD 36.2 million for the three months ended June 30, 2022, representing an increase of about 27.0% compared to HKD 28.5 million for the same period in 2021[8]. - The profit attributable to owners of the company for the three months ended June 30, 2022, was approximately HKD 32,000, a significant improvement from a loss of HKD 1,419,000 in the same period of 2021[8]. - The gross profit for the three months ended June 30, 2022, was HKD 6.746 million, compared to HKD 5.296 million for the same period in 2021, indicating a positive growth in profitability[9]. - The total comprehensive income attributable to owners for the period was HKD 122,000, compared to a total comprehensive loss of HKD 1,423,000 in the same period of 2021[9]. - The basic and diluted earnings per share for the three months ended June 30, 2022, was HKD 0.01, recovering from a loss per share of HKD 0.35 in the same period of 2021[9]. - The group reported a financing cost of HKD 79,000 for the three months ended June 30, 2022, a decrease from HKD 332,000 in the same period of 2021[9]. - The company recorded a net loss of HKD 32,000 for the three months ended June 30, 2022, compared to a net loss of HKD 1,419,000 for the same period in 2021[41]. - Gross profit increased by approximately 27.4%, from about HKD 5.3 million in 2021 to about HKD 6.7 million in 2022, maintaining a gross profit margin of 18.6%[55]. Revenue Breakdown - Revenue from major customers included HKD 4,486,000 from Customer A and HKD 5,644,000 from Customer E, with Customer A's revenue decreasing by 21% compared to the previous year[23]. - Revenue from the United States increased to HKD 14,362,000, up 42% from HKD 10,132,000 in the prior year[26]. - Revenue from outerwear products was HKD 8.0 million, accounting for 22.1% of total revenue, compared to HKD 5.9 million or 20.8% in the previous year[48]. - Revenue from woven shirts increased significantly to HKD 5.6 million, representing 15.4% of total revenue, compared to HKD 2.2 million or 7.9% in the previous year[48]. - The group sold 321,961 units in the three months ended June 30, 2022, compared to 278,931 units in the same period of 2021, representing an increase of approximately 15.4%[49]. - The sales volume for jackets increased from 34,320 units in 2021 to 46,485 units in 2022, a growth of 35.5%[50]. - The average selling price for woven shirts rose by 10.9% from HKD 124.9 in 2021 to HKD 138.5 in 2022[52]. Expenses and Costs - The group’s administrative expenses decreased to HKD 5.164 million for the three months ended June 30, 2022, from HKD 5.596 million in the same period of 2021, reflecting improved cost management[9]. - Employee costs, including director remuneration, amounted to HKD 5.3 million for the three months ended June 30, 2022, compared to HKD 5.1 million for the same period in 2021[35]. - Selling and distribution expenses increased by approximately 28.5%, from about HKD 1.9 million in 2021 to about HKD 2.4 million in 2022, mainly due to higher marketing expenses[58]. - The cost of sales increased by approximately 26.9%, from about HKD 23.2 million in 2021 to about HKD 29.5 million in 2022, consistent with the increase in total sales volume[54]. - The company experienced a significant reduction in bank overdraft interest, which decreased to HKD 36,000 from HKD 299,000 year-over-year[33]. - Administrative expenses decreased by approximately 7.7%, from about HKD 5.6 million in 2021 to about HKD 5.2 million in 2022[59]. Shareholder Information - As of June 30, 2022, the company’s major shareholders, Mr. Leung and Ms. Tam, each hold 280,000,000 shares, representing 70% of the issued share capital[65]. - The shares held by Giant Treasure, which is beneficially owned 50% by Mr. Leung and 50% by Ms. Tam, also account for 70% of the company’s total shares[68]. - No other individuals or entities, apart from the directors and major executives, reported holding 5% or more of the voting shares as of June 30, 2022[69]. Corporate Governance - The company has adopted a code of conduct for securities transactions by directors, ensuring compliance with GEM listing rules[74]. - The company has established a non-competition agreement with its controlling shareholders to avoid conflicts of interest[72]. - The board believes that the current leadership structure, with Mr. Leung serving as both Chairman and CEO, is appropriate for the company[73]. - The company has complied with all provisions of the corporate governance code, except for the separation of the roles of Chairman and CEO[73]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial results for the three months ending June 30, 2022, and found them compliant with applicable accounting standards[76]. Other Information - The company did not recommend any dividend payment for the three months ended June 30, 2022, consistent with the previous year[8]. - The company has not made any provisions for Hong Kong profits tax, Chinese corporate income tax, or other overseas subsidiary taxes due to the absence of taxable profits during the period[38]. - The group reported other income of HKD 582,000, compared to HKD 55,000 in the previous year, indicating a substantial increase[28]. - Government grants received amounted to HKD 523,000, significantly higher than HKD 32,000 in the same period last year[28]. - There were no significant events after June 30, 2022, that would impact the company's operations and financial performance[75]. - The company did not purchase, sell, or redeem any of its listed securities during the three months ending June 30, 2022[71]. - The report is published on the GEM website and will be available for at least seven days from the date of publication[79]. - The group has adopted new and revised Hong Kong Financial Reporting Standards effective from April 1, 2022, with no significant impact on the financial statements[17]. - The group has no early application of new standards that have been issued but are not yet effective, and is currently assessing their potential impact[17]. - The group's functional currency is Hong Kong dollars, and all amounts are rounded to the nearest thousand[14]. - The group's accumulated exchange reserves reflect foreign exchange differences from the conversion of overseas business assets into Hong Kong dollars[12]. - The unaudited consolidated financial performance for the three months ending June 30, 2022, has not been reviewed by the company's auditors[77]. - The executive directors include Mr. Leung Kwok Hung and Ms. Tam Suk Fan, with independent non-executive directors being Ms. Cheung Wai Man, Mr. Lau Yau Chuen, and Mr. Lee Kwan Ting[78].
爱世纪集团(08507) - 2023 Q1 - 季度财报